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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: $Mogul who wrote (70468)10/25/2007 12:29:41 PM
From: mishedlo  Read Replies (3) | Respond to of 116555
 
Historically Stocks rise most in periods of disinflation.
proof of this is the disinflationary 1990's.
If you want to call that a rise in anticipation of inflation you are free to believe so. It is the 3rd quadrant disinflation, where stocks go parabolic. Following disinflation comes deflation where stocks crash.

So actually it would be more appropriate to say stocks rise in anticipation of deflation.

I suggest you take a look at the K-Cycle

Mish